Solution Stew: The Federal Government

HUMP DAY: Middle of the week. The Center.

I have long believed the main reason the nabobs in WADC can't get anything accomplished is because the nut jobs (the 10% at either end of the spectrum) are yelling so loudly, no one can hear the semi-sensible 80% in the middle, including themselves. So, beginning today, the menu for Hump Day at The Lounge will be Solution Stew. We'll take a single topic for which there is a current disagreement, and we'll solve it. Your comments at the bottom of every column are, of course, more than welcome.

Today's topic: The Federal Government

"WOW!", you say to yourself as you read this. "Either this guy is an absolute genius for being able to correct the inefficiency and incompetence of the Federal Government, or a blithering idiot for believing he can".

While I am quite certain you'll find more people who believe the latter rather than the former, if we look at the actual cause of the problems in Washington, the answer is really quite simple. I took the "Backwards Approach", defining the problem, and then taking the logical steps backwards to where I wanted to end up.

The problems stem from the quite understandable desire of those interested in serving in elected office to be re-elected. This desire, combined with the high level of competitiveness for these relatively few positions, leads to an increase in the effort and thereby the resources (read: money) that are necessary to attain victory on election day.

Being that money does not grow on trees, persons wishing to win said election need to raise necessary financial resources, and therefore look at what they have that would be of value to those who can provide it. The answer: Should these candidates be victorious and attain a seat in either house of Congress or the Oval Office, they would then be in a position to vote for or support legislation that would be looked upon favorably by those heavy ticket contributors.

This has completely changed the dynamic of our political sysytem as it was meant to be. The individual is no longer a "representative", but a "politician", and the priority for the politician is no longer about representing the constituents of their district, state or nation, but rather about getting elected (or re-elected). The decisions they make, the votes they cast, and the laws they sign or veto are now at the behest of those individuals, organizations and large corporate interests who can help insure their continued stay in washington, instead of the electorate, and now you have the mess that currently exists.

So, how do we fix it?

Well, if the problem is created by the financial influence of the special interests, then that is what needs to be eliminated.

So the question now becomes: "How can the electoral process be financed so that these special interests have no influence?"

The answer is to make the electorate the only special interest. In other words, if "the people" fund the elections, then that is who the repesentatives will be beholden to.

So the question now becomes: "How can the people (the government) afford to finance the elections?"

To find that answer we need to ask one other: "Where do the government's funds that would be used for such a purpose come from?"

The answer of course is, from the individual and corporate taxes we pay.

"Oh!", but you say, "we're already paying too much in taxes, we can't aford any more and we certainly can't afford to put our nation deeper in debt. How do we do it?"

This is the easy part. And you'll be amazed to find the answer is to actually lower the tax rates on virtually all Americans and corporate interests. Now I can hear those of oyu on th efar left already screaming about "Trickle Down" and taking food from the plates of the poor. Relax, nothing could be further fromthe truth. And here's why...

In 2007, presidential candidate Ron Paul's campaign did a massive study on what the effects of a flat tax system. The study found that the current Federal Tax Code was made up of nearly 80% of exemptions, set-asides, deferments, and deductions for a very small number of qualifying citizens or corporate entities. The results of this study, that the federal government would be much more financially solvent were they to elinimate these special interest deductions and simply lower everyone's taxes to a set, flat rate, were corroborated a year later when Mobil/Exxon posted 92 BILLION dollars in PROFITS for fiscal year 2008 however, because of the more than 3,400 pages devoted specifically to corporatins of which they were the only one fully qualified to take advantage of them, paid less than 112 million dollars if federal income tax in that same fiscal year.

Paul's idea in theory was brilliant, however being that he was running for office, the proposal was skewed just enough to hopefully attract voters, but also to make it wholly ineffective. Now, using Paul's research, I have devised the following Flat Tax Program:

1. Eliminate ALL individual and corporate tax incentives, deductions, set-asides, deferments and exemptions and reduce the Federal Income Tax Rate to 15%. This will now include ALL business done, world wide, by any business or corporation based in the United States. If those businesses choose to relocate outside the US, there will be a 22% tarriff on all goods and service transactions here in the US.

Small businesses (those with less than 100 employees and or a profit of less than $1 million), will have a FITR of $12%.

Individuals earning between $14,000 and $19,500 will have an FTR of 10%, with those earning between $9,500 and $13,999 will have an FTR of 5%.

Those earning less than $9,500 will be exempt from Federal Income Tax. Social Security, pensions, and 401k will also be exempt from taxation.

With regards to inheritance taxation, liquid assets (cash, stocks, bonds, real property, and saleable goods will be taxed at a rate of 10%, with non-durable goods (transportations, machinery, etc.) will only be taxed at the time of any future sale of the asset by the assignee.

Capital Gains tax will also be reduced to a flat 15%.

By making the stated tax burden for everyone the actual tax burden for everyone, and by eliminating the tax advantages for the privelaged few, conservatives will be getting what they have been clamoring for, for as long as anyone can remember...a fair and equal taxation system. Progressives will in turn, be getting what they have been shouting about for just as long, profitable corporations to pay their fair share.

What the American people will receive from this is the following:

1. Funding to rebuild or update EVERY public elementary, middle and high school as well as to provide states with subsidies to start ALL public school teachers at 100K per year, with raises (and job security) to be based on performance. Tenure no longer exists.

2. Funding for research into alternative fuels and 100mgp hybrid engines.

3. Permanent solvency for Social Security, Medicare, Medicaid as well as a government funded universal healthcare coverage for those who can not afford coverage themselves. The universal "public option" will create a "real" competition in the insurance market, causing ALL insurance rates to drop and with the drop in lower and middle class FITR's, evryone should be able to afford their own coverage, thereby reducing the financial burden to the government.

4. Funding for transportation and utility infrastructure, those jobs helping to thereby decrease the unemployment rolls and welfare entitlements AND increase governmental revenue.

5. Increase funding for local, state and federal law enforcement as well as to our military and border patrol efforts.

6. And most important, full funding for all congressional, senatorial and presidential elections, thereby returning the jobs of our elected officials to be as they were always intended, to repersent the electorate.

The only real downside to this is the temporary increase by 65,000 to the unemployment rolls, as the lobbyists onK Street will now be out of work.

Now for the bad news.

This will never happen, because it does not benefit one very small group of American citizens.

The American Politician.

Were this to come to fruition, there would be no more tax payer funded flights for officials and their families to exciting, overseas locales, where they have no business in teh first place; no "junkets" to the golf courses and resorts on the islands while they research the rising tides and their effect on the economy of Jakarta; no more African safaris to help determine the need for protection of the three-toes sloth.

If the blowhards in the Tea Party want to make a difference, do this. If the American people want to get their government back and see the American dream truly be a reality accessible to ALL its citizens, here's your answer.

Continuing to vote for the next politician who tells you what you want to hear and expecting his or her fairy tales to come true...that will just make YOU the punchline at the next Georgetown cocktail party.


Note: We are grateful for the many, MANY e-mails we have received on this new blog. However, we would greatly appreciate if you would add your comments or questions to the "Comments" section at the bottom of each day's postings and if you would encourage others, through your FB or MySpace or your personal e-mail list, to join, visit, and participate. The more the merrier...

and the next round is on us.